Emerging Asia Hedge Funds Add 7% In Q1

May 11 2012 | 11:44am ET

Hedge funds investing in Emerging Asia gained 7.4% in Q1 2012, their best start since 2006, according to numbers from Hedge Fund Research.

The number of active Asia-focused hedge funds increased to 1,101, approaching their Q4 2007 high water mark of 1,107. Capital invested in the Asian hedge fund industry has increased by over $4.5 billion since the end of 2011 to $86.6 billion. Net inflows in the first quarter totaled $1.39 billion, net redemptions $1.64 billion.

China remains the preferred location for hedge fund firms investing in Asia, with 30% headquartered in China (up from 20% in 2009). Worldwide, China trails only the U.S., U.K. and Switzerland as the preferred location for hedge fund headquarters.

“It is difficult to overstate how important the ability for investors to access Asian markets and investors as an integral component of the growth of the global hedge fund industry in coming years,” stated Kenneth J. Heinz, president of HFR. “China will continue to emerge as the capital of the Asian hedge fund industry, representing integral access to specialized local expertise and insight of Asian markets as sophisticated hedge fund strategies evolve to operate in these markets. As this occurs, funds operating in Hong Kong, Shanghai and Singapore will be as relevant and significant to investors as those operating in New York, London and Zurich.”


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